For the Quarter Ending September 2025
North America
• In the United States, the Neodymium Price Index rose quarter-over-quarter in Q3 2025, driven by surging rare earth metal prices.
• Neodymium production costs increased in Q3 2025, influenced by a 2.6% PPI rise in August and elevated natural gas.
• Global Neodymium supply tightened in Q3 2025 due to external export restrictions on rare earth metals.
• Demand for Neodymium strengthened in the automotive sector, with Electric Vehicle sales surging in Q3 2025.
• Wind energy sector activity showed recovery in Q3 2025, increasing orders for Neodymium-containing turbines.
• US industrial production grew modestly by 0.1% year-over-year in September 2025, indicating subdued growth.
• Strong retail sales (5.42% YoY, September 2025) and a 4.3% unemployment rate bolstered consumer spending.
• Moderate consumer inflation (3.0% CPI, September 2025) and declining confidence (94.2) suggested cautious discretionary spending.
Why did the price of Neodymium change in September 2025 in North America?
• Rising rare earth concentrate feedstock costs and elevated natural gas prices increased production expenses.
• Global supply tightened significantly in Q3 2025 due to external export restrictions on rare earth metals.
• Strong demand from the automotive sector, with surging EV sales, contributed to upward price pressure.
Europe
• Germany's Neodymium Price Index rose in Q3 2025, driven by strong EV demand and rising feedstock costs.
• Neodymium production costs rose in Q3 2025 due to elevated industrial energy and rare earth feedstock costs.
• Germany's industrial production decreased 1.0% in September 2025, reflecting reduced manufacturing output.
• Automotive demand strengthened in September 2025, with surging EV registrations boosting Neodymium demand.
• The Manufacturing Index was contracting in Q3 2025, indicating weakened industrial activity and fewer new orders.
• Rare earth supply chains tightened in Q3 2025 due to China's export restrictions, limiting European approvals.
• Producer prices of industrial products decreased 1.7% in September 2025, mainly from lower energy prices.
• Consumer Price Index increased 2.4% in September 2025, raising Neodymium end-product production costs.
• Retail sales rose 0.2% in September 2025; unemployment remained stable at 6.3%, impacting consumer demand.
Why did the price of Neodymium change in September 2025 in Europe?
• Supply disruptions and China's export restrictions raised rare earth feedstock costs in Q3 2025.
• Strong German EV registrations and automotive output boosted Neodymium demand in September 2025.
• Elevated industrial energy prices in Germany throughout Q3 2025 increased Neodymium production costs.
APAC
• In China, the Neodymium Price Index fell quarter-over-quarter in Q3 2025, driven by contracting manufacturing and deflationary pressures.
• Neodymium demand faced headwinds from a -0.3% CPI year-over-year in September 2025, indicating weak consumer demand.
• Production costs were influenced by China's expanded rare earth quota system in August 2025, tightening supply control.
• Despite a 6.5% year-over-year industrial production increase in September 2025, the Manufacturing Index contracted.
• Rare earth magnet inventories in China ballooned in July 2025, contributing to downward Neodymium price pressure.
• Strong demand drivers included surging electric vehicle sales in September 2025 and strengthening wind power capacity.
• Neodymium export volumes from China surged in August 2025, with rare earth magnet exports also increasing in July.
• Consumer confidence, at 89.6 index in September 2025, suggested reduced discretionary spending for Neodymium end-use products.
Why did the price of Neodymium change in September 2025 in APAC?
• Deflationary pressures from -0.3% CPI and -2.3% PPI in September 2025 dampened industrial and consumer demand.
• Contracting manufacturing activity in September 2025, despite industrial production growth, reduced raw material demand.
• Ballooning rare earth magnet inventories in July 2025 and surging exports created an oversupply situation.
